IFM14426 - Eligibility condition B
Condition B is that the shares making up the company’s ordinary share capital (or, if there are such shares of more than one class, those of each class) are admitted to trading on a regulated market (CTA10/S1158(3)).
“Regulated market” has the same meaning as in Article 4.1(14) of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments (CTA10/S1158(4)) (NB this will be updated once the United Kingdom leaves the EU).
Where at the date an application is made for approval as an investment trust:
- the company has commenced procedures to obtain admission of its ordinary shares to trading on a regulated market but has not yet obtained admission; or
- has given a commitment in its prospectus to commence such procedures but has not yet done so;
eligibility condition B is treated as satisfied for the period of 60 days commencing with the date of the application.
An investment trust may issue ordinary shares of a different class to those shares that make up its ordinary share capital. When this occurs, eligibility condition B is treated as satisfied in relation to the new ordinary shares of a different class for the period of 60 days beginning with the date on which the new ordinary shares of that different class were issued.
In addition, there are provisions deeming condition B to be met for investment trusts in winding up (IFM14429).